Letter from AXA Re-Transfering a Pension

dunstonh

I havent read their material and wouldnt say it does or doesnt. However, the focus on "information" and what is direct offer and execution only is only recent in the pink papers.

For such warnings to be issued, they must have noticed an increase in failures on that front. It is well known that the FSA have employed external companies to search the internet for sites breaking FSA rules and I would guess that the warning comes in some part from that. Also, as advice and execution only is monitored by case count and reported to the FSA, perhaps they have noticed a trend towards execution only that they dont feel is natural.

One of the examples given was on fund selection and steering people towards that fund without actually saying the magic words "I advise you...". A nod and wink towards a fund would be considered advice.

stuart264

Sorry but this is going straight over my head, while I take on board that with a SIPP I can take my own investment decisions.

I wouldn't mind being pointed a plain English de-jargonised explanation here or the title of a book i can read that makes this simple........about the level of "Noddy Learns Investment Banking".

Stuart.

EdInvestor

For a Sipp have a look here:

https://www.h-l.co.uk

I'm afraid jargon comes with the pensions territory.

dunstonh

I'm afraid jargon comes with the pensions territory.

Jargon comes with everything. Not just pensions. If you dont know what you are doing then you should consider whether you should go DIY or not. Some people can go DIY and do a good job. Others can make a right mess of it. (Just like anything done DIY).

stuart264

Actually the H-L site does look quite interesting and I like the fact that i can choose where I invest, mainly because my HSBC pension fund has really lost money and from what I read I only really need to know my way around which funds I am investing in.

dunstonh

mainly because my HSBC pension fund has really lost money

HSBC investments/pensions tend to typically end up in trackers. Whilst FTSE100 and all share trackers have been pretty naff for sometime it could easily have been better and at points in the future they will be.

What makes you think any of the funds available out there would be any different? Perhaps you are not invested within your risk profile?
Are you really measuring like for like?

If you invested in a FTSE 250 tracker before the crash and pulled out after you would have said it had lost money. If you invested after the crash in a FTSE100 tracker then you would have made money. The inexperienced individual usually says at this point that the second investment was better. However, the first one would have been best if both investments were in the same period.

When you look at these things you need to be aware that they go up and down and sometimes at different times and by different amounts.

I have already said that I dont believe AXA and HSBC to be the right choice but dont go into a SIPP thinking it is going to be better. It could easily be worse if you pick the wrong mix of funds. Especially if you invest based on past performance and dont consider your risk profile.

stuart264

I agree but I would go for it with the knowledge that I am in control of the fund and could react if needed to market forces and I would take a spread risk across the market (I have been reading the jargon) anyway my HSBC pension loses money and the AXA one has barely made 3% pa.........i couldn't do a lot worse if I chucked it in a general fund thats projecting 3-5% growth.

dunstonh

Where are your HSBC and AXA pensions currently invested?

i couldn't do a lot worse if I chucked it in a general fund thats projecting 3-5% growth.

Projecting is not acheiving though. There are an awful lot of people out there with FTSE100 trackers or investments that are tracking the FTSE100 which have barely broken even. Yet projections would still be 5-7-9%